For employers who report PAYGW on their BAS or IAS between March and June 2020, you will now receive a credit of 100% of the PAYGW reported (up from 50%). The maximum credit has also increased to $50,000 (up from $25,000).

For employers who lodge monthly IAS, the credit on your March IAS will be equal to 300% of the PAYGW reported to ensure that you are treated equally to those who lodge quarterly BAS.

You will also receive a minimum credit of $10,000 on your March 2020 BAS or IAS if:

– you report wages but do not report any PAYGW
– you report PAYGW but it is less than $10,000

You may then receive a credit on subsequent lodgements (April, May, June 2020 BAS or IAS) if or when the total PAYGW reported exceeds the minimum $10,000 already credited to you on the March lodgement.

Phase 2

In addition, the government is now providing payments for the June to September 2020 lodgements to extend the duration of relief to employers.

This additional payment will be equal the 100% of the credit that you received for your March and June 2020 BAS or IAS (ie. the benefit explained above is being doubled).

For quarterly BAS lodgers, this additional credit (100% of whatever was credited to you for the March and June PAYGW) will be credited to your ATO account in 2 installments (the first after lodgement of the June 2020 BAS, and then the second after lodgement of the September 2020 BAS).

For monthly IAS lodgers, the additional credit (100% of whatever was credited to you for the March, April, May, and June PAYGW) will be credited to your ATO account in 4 installments (one installment after the June, July, August, and September 2020 IAS lodgements).

The above fact sheet from the ATO provides more details and examples, as well as details about an apprenticeship subsidy. Throughout this fact sheet, the benefit explained above is referred to as “Boosting Cash Flow for Employers”.